Finance Minister Arun Jaitley on Monday hinted at further rationalisation of GST by merging the 12 and 18 percent slabs, while criticising Congress for oppressing the country with a high indirect tax rate of 31 percent.
With an increase in revenue, India will eventually have standard goods and services tax (GST) rate between 12-18 percent for commonly used goods. This would be in addition to 0 percent and 5 percent for essential items and a higher rate for luxury, sin and demerit goods.
The biggest challenge for GST was to end multiple taxes, focus on simplifying the tax regime, he said, adding that the aim was to lower tax rates, increase mop-up.
With inputs from PTI.